Explore BrainMass


Moss Interiors: Accounting for Goodwill

Fred Moss, owner of Moss Interiors, is negotiating for the purchase of Zweifel Gallaries. The balance sheet of Zweifel is given in an abbreviated form below. Zweifel Galleries Balance Sheet As of Dec. 31, 2008 ASSETS: Cash - $100,000 Land - 70,000 Building (net) - 200,000 Equipment (net) - 175,000 Copyright (net) -

The Plane Ride to Profit

See the attached file. Chapter 6: Written Assignment: The Plane Ride to Profit You are the President of Union Molding, on an airplane to meet with a potential investor. You have just opened your briefcase expecting to find the latest income statement, but in its place is the sales and expense data. Because your office

Superior Door Company: Operating Leverage

I need help with the following exercises (please see attached Word document). Please make sure when using Excel that the solution is identified with the questions. The reason for this is because in the past the spreadsheets have been hard to understand. Thank you for your help!

Cumulative Total Time

Abboud Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1,000 units. The variable labor costs are $30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are $10,000 in fixed costs not subject to learning. Refer to Figure 3-4. What is the c

Managerial Accounting

5-21 Activity-based costing, service company Quikprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Quikprint classifies its various printing jobs as standard jobs or special jobs. Quikprint's simple job-costing system has two direct cost categories (direct materials and di

Break even analysis

To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $3200. The cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each st

Determining Book Value per Share: Example Problem

I need help looking for the change in the book value per share for a company that is considering the sale of 12,000 shares of stock to finance the development of a new security product. The firm has 40,000 shares of common stock outstanding, par value of $1.00 per share. The firm has $60,000 in additional paid in capital and $80

Accounting Equations

#1. At the end of an accounting period, the amount of net income earned by a company is transferred to the balance sheet and reported under which one of the following categories? a. owner's equity b. liabilities c. assets d. all of the above #2. Shari started a computer software firm by investin $20,000 of her own money.

Issuance, Exercise, and Termination of Stock Options

On January 1, 2008, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common atock at $25 per share. The options were exercisable within a 5 year period beginning Jan. 1, 2010, by grantees still in the employ of the company, and expiring Dec. 31, 2014. The

Changing underapplied or overapplied overhead costs

Account balances are as follows: Manufacturing overhead $240,000 underapplied Work in process 100,000 Finished goods 300,000 Cost of goods sold 800,000 If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balance

Allocation rate per order, forecasted productions units for Norah Co

5) Zipp Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups Machine Hours Packing Orders X 10 500 75 Y 10 2,000 175 Cost per pool $9,000 $60,000 $15,000 What is the all

Accounting research methodology, types of risk, net operating loss

Accounting research is developed using research methodology. Which of the following is not a commonly identified methodology? a. Detailed approach b. Deductive approach c. Pragmatic approach d. Behavioral approach The type of risk that is related to the overall movements in the stock market and is unavoidable is cal

Fair Value and Equity Method for purchase of Kulikowski Inc

Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2008. The purchase price was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2009. Kulikowski reported net income of $730,000 for 2009. The

What is the fundamental issue surrounding capitalization versus expensing?

Using course materials, the internet, and/or the Library answer the following questions: What is the fundamental issue surrounding capitalization versus expensing? Which approach do you believe management would prefer? Which approach do you believe auditors would prefer? Why? Apa style No copy and paste Intext

Delaware Company Research and Development

S12-1 (LO 9) Delaware Company incurred the following costs that relate to research and development in 2009: Salaries and wages for lab research $ 400,000 Materials used in R&D projects 200,000 Construction of prototype used in R&D 900,000 Research & Development assoc w /specific c

Step by Step solutions S11-1

1. ABC Company purchased manufacturing equipment on February 1, 2007 for $504,000 to be used in a new manufacturing facility production. The equipment is expected to have a salvage value of $24,000 at the end of 12 years of production. It should produce 435,000 units and maintain 49,000 hours of production. During 2008 the equip

Compute the Fixed Asset Turnover

Current assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,000 Fixed assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000 Fixed assets, beginning of year . . . . . . . . . . .

Professional Research: FASB Codification

I need a lot of help on this, I am completely lost. Thank you. Preferred language style: English (U.S.) In memo format: answer the question from "Professional Research: FASB Codification". On each written assignment, students should follow the APA guide for referencing and citations. 3-5 pages Three-four references per questi

Accounting for Organization Costs

Please see attached file. Fontenot Corporation was organized in 2009 and began operations at the beginning of 2010. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations. Attorney's fees in connection with organization of the compan

Calculating Units Necessary for a Certain Net Operating Income

Evergreen corp has provided the following data: sales per period: 1,000 units selling price: $40 per unit Variable manufacturing cost: $12 per unit Selling expense: $5,100 plus 5% of selling price Administrative expenses: $3000.00 plus 20% of selling price The number of units needed to achieve a target net operating i

Mesmer Analytic

Mesmer Analytic, a biotechnology firm, floated an initial public offering of 2,000,000 shares at a price of $5.00 per share. The firm's owner/managers held 60 percent of the company's $1.00 par value authorized and issued stock following the public offering. One month after the IPO, the firm's board of directors declared a one-t

Federal Tax Research

1.What is the function of commercial tax services? 2. Why would a practitioner need a tax service when most primary tax sources are available for free on the internet? 3. Describe the function of a citator in tax research process?

Steadry Corporation Consolidation: Prepare eliminating entries

Steadry Corporation purchased 80 percent of Lowe Corporation's stock on January 1, 20X2. At that date Lowe reported retained earnings of $80,000 and had $120,000 of stock outstanding. The fair value of its equipment and buildings was $32,000 more than the book value. Steadry paid $190,000 to acquire the Lowe shares. The remain

Herman Corporation operates two divisions

Herman Corporation operates two divisions, the A Division and the B Division. Both divisions manufacture and sell logs to paper manufacturers. The company is considering disposing of the B Division since it has been consistently unprofitable for a number of years. The income statements for the two divisions for the year ended De

Major Users of Accounting Information

The information needs of a specific user of financial accounting information depends upon the kinds of decisions that user makes. Identify the major users of accounting information and discuss what questions financial accounting information answers for each group of users.